Spot natural gas prices (CFDS ON NATURAL GAS) fell during their early trading on Tuesday, to record daily losses until the moment of writing this report by -4.92%. It settled at $3.722 per million British thermal units, after rising by 2.15% during yesterday's trading.
U.S. natural gas futures jumped about 5% on Monday, on expectations that heating demand will be slightly higher next week than previously expected, and with short sellers taking profits after prices fell to their lowest since July of 2021. last week.
Traders said the biggest market uncertainty remains when Freeport LNG restarts its Texas LNG export plant. The more Freeport returns, the greater the US demand for gas, as the plant can convert about 2.1 billion cubic feet per day (bcfd) of gas into LNG ready for export, which is about 2% of daily US production.
Meanwhile, data from pipeline operators showed that eastbound gas flows on the Yamal-Europe pipeline to Poland from Germany and Russian gas flows through Ukraine remained stable on Tuesday morning.
Data from the Ukrainian Transport System showed that nominations or requests for Russian gas to Slovakia from Ukraine through the Velek Kapusany border point were stable at 29.8 million cubic meters.
Natural Gas Technical Analysis
Technically, the bearish corrective trend dominates the movement of natural gas in the short term and along a slope line, as shown in the attached chart for a (daily) period of time. Negative pressure continued for its trading below the simple moving average for the previous 50-day period, to prepare the price, with its early decline, to break the pivotal 3.618. support level If the price breaks this support, it will increase the negative pressure on its next trading.
Therefore, our expectations indicate a further decline for natural gas during its upcoming trading, especially if it breaks the 3.618 support, to then target directly the first support levels at 3.098.
Ready to trade FX Natural Gas? We’ve shortlisted the best commodity trading brokers in the industry for you.